RIVALRY AMONG COMPETING SELLERSCompetitive Landscape China- Chinese Cuisine Market - Haidilao Leading in a Highly Fragmented Market● The Chinese cuisine market in the PRC is highly fragm
FOREIGN TRADE UNIVERSITY HO CHI MINH CAMPUS oOo PRESENTATION Select a listed company and analyseitsmanagement environment Recommendsuitableand feasible strategy for that company Group: Subject: Business Management Class: K60CLC7 Thành phố Hồ Chí Minh, tháng 09 năm 2022 A/ INTRODUCTION BRAND STORY BRAND VISION BRAND PHILOSOPHY FEATURE SERVICES IMPRESSIVE NUMBERS 9 9 9 B/ EXTERNAL ENVIRONMENT I/ MACRO ENVIRONMENT (PESTEL) POLITICAL 1.1 Government stability 1.2 Tax policies 1.3 Competition regulations 1.4 Trade blocs ECONOMIC 2.1 GDP trends and rate of economic growth 2.2 Inflation Rate 2.3 Government Spending 2.4 Demand Shifts from Goods Economy to Service Economy 2.5 Interest rate 2.6 Unemployment rate SOCIAL 3.1 Demographics 3.2 Education level 3.3 Attitude TECHNOLOGICAL 4.1 Technological infrastructure 4.2 Internet penetration 4.3 Investment in R&D ENVIRONMENTAL 5.1 Environmental regulations 5.2 Waste management 5.3 Customers’ awareness 10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 11 12 12 12 12 12 12 12 12 12 13 5.4 Renewable technologies LEGAL 6.1 Business Laws 6.2 Transparency in Judiciary System & Processes + Time Taken for Court Proceedings 6.3 Consumer Protection Laws 6.4 Employment Protection Laws 6.5 Intellectual Property Rights Protection 6.6 Health & Safety Laws II/ MICRO ENVIRONMENT (PORTER’S FORCES) RIVALRY AMONG COMPETING SELLERS SUPPLIERS BUYERS SUBSTITUTES NEW ENTRANTS C/ INTERNAL ENVIRONMENT I/ ORGANIZATIONAL CULTURE BRAND IMAGE 1.1 Name “Haidilao” 1.2 Logo 1.3 Slogan BRAND MISSION 2.1 Philosophy 2.2 Vision CORPORATE SOCIAL RESPONSIBILITY 3.1 Devotion to communities 3.2 Bingwen library 3.3 “Beauty in Kindness” 3.4 Jianyang Tongcai Experimental School II/ RESOURCES TANGIBLE RESOURCES 1.1 Finance 1.2 Physical assets INTANGIBLE RESOURCES 2.1 Technology 2.2 The brand 2.3 Customer relationship HUMAN RESOURCES 3.1 Training and development 13 13 13 13 13 13 14 14 14 14 15 17 19 19 20 20 20 20 20 20 21 21 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 24 3.2 Employee well-being III/ CAPABILITIES VALUE CHAIN & VALUE SYSTEM PRIMARY ACTIVITIES 2.1 Inbound Logistics 2.2 Operations 2.3 Outbound Logistics 2.4 Marketing and Sales 2.5 Services SUPPORTING ACTIVITIES 3.1 Firm Infrastructure 3.2 Human Resources Management 3.3 Technology Development 3.4 Procurement Activities at Haidilao 25 25 25 25 26 27 27 28 28 29 29 30 31 32 D/ SWOT ANALYSIS I/ SWOT STRENGTHS WEAKNESSES OPPORTUNITIES THREATS II/ SWOT STRATEGIES SO STRATEGY WO STRATEGY ST STRATEGY WT STRATEGY 32 32 32 34 36 38 40 40 40 40 41 E/ REFERENCES 41 HAIDILAO A/ INTRODUCTION BRAND STORY The brand Haidilao was founded in 1994 With over 20 years of development, Haidilao International Holding Ltd has become a world-renowned catering enterprise (20) BRAND VISION Communication is a must in establishing trust among people and Chinese hot pot is a perfect choice for enhancing social networking at table Haidilao is committed to encouraging more people to chat with each other and enjoy their food at table, and creating a kind of table culture favored by young people around the world (20) BRAND PHILOSOPHY We are always committed to the mission of creating happy hot pot time and spreading healthy hot pot culture to foodies all over the world through selected products and innovative services As a large restaurant chain with global outreach, following the business principle of integrity, Haidilao seeks to provide consumers with more thoughtful services and healthier, safer and better food with more nutrition, while enhancing the stability and safety of food quality (20) FEATURE SERVICES Taking customer experience as our top priority, we always provide innovative and pleasant services to our customers All the personalized services offered by our restaurants are derived from the innovative ideas of our staff These warm and personalized services turn every meal into a happy experience (20) IMPRESSIVE NUMBERS In 2021: 1,443 restaurants in total in China, Hongkong, Macao, Taiwan and other 11 countries with more than 378 million customers (6) B/ EXTERNAL ENVIRONMENT I/ MACRO ENVIRONMENT (PESTEL) POLITICAL 1.1 Government stability - No imminent threats from terrorists and military issues in existing markets (1) - Political stability in existing markets: China, HongKong, Malaysia, Singapore, VietNam, South Korea, Japan, The USA, Australia… → support business’s growth expansion (2) - China has good records of consistently adhering to international treaties, specifically WTO’s regulations on Restaurant Industry (3) - Enhance trade relations with other countries + attract FDI → equity for business to upgrade infrastructure + brand image (4) 1.2 Tax policies High domestic tax rate : “It is understood that Singapore has to pay a very low tax, no matter whether it is personal income tax or corporate income tax, it will not exceed 20% , but it is different in China It needs to pay 50% of the tax.” (5) 1.3 Competition regulations China’s comprehensive system of competition law (came into effect on August 2008) with key rules against monopoly -> ensure fair play among competitors, monitor and regulate import and protect rights and benefits of stakeholders (6) 1.4 Trade blocs China maintains 17 Free Trade Agreements (FTAs) and is implementing additional FTAs → Business can lower resource costs, increase supply of talented labor, and benefit from gaining advanced technology and knowledge from foreign experts (7) Document continues below Discover more from: Principle of Marketing MAR 211 Trường Đại học… 999+ documents Go to course International 22 15 marketing strategy… Principle of… 97% (97) 200 câu trắc nghiệm Marketing có đáp án Principle of… 96% (813) Phan tich chien luoc 59 51 41 marketing TH Principle of… 100% (21) PHÂN TÍCH CHIẾN LƯỢC MARKETING… Principle of… 97% (60) Chapter 12 - Test bank Principle of… 100% (16) Principle of… 100% (16) Marketing CĂN BẢN ECONOMIC 2.1 GDP trends and rate of economic growth - GDP growth rate increases signals growth in demand -> Business leverages this trend by expanding its product range and targeting new customers (by identifying changes in consumption patterns -> emerging value proposition) - The Gross Domestic Product (GDP) in China was worth 17734.06 billion US dollars in 2021 GDP in China is expected to reach 16700.00 USD Billion by the end of 2022 2.2 Inflation Rate Impose impact on the demand of products → High inflation can cause an increase in prices (→ lose brand loyalty and constant endeavors to manage costs.) and decrease in disposable income (→ lower purchasing power) 2.3 Government Spending The government of the country is running deficit budgets → Business may expose currency depreciation risks in the medium term 2.4 Demand Shifts from Goods Economy to Service Economy 2.5 Interest rate Moderate interest rate helps businesses take loans for development and expansion 2.6 Unemployment rate Will affect purchasing power as well as cost of production (Unemployment rate high → lower disposable income, unqualified labor force → high cost of production → high price , work productivity is high → employ skilled workers at competitive price) SOCIAL 3.1 Demographics Gender roles, power structure in society, portion of youngsters, birth rates… 3.2 Education level Indicator of quality of labor force, consumption decisions and preferences 3.3 Attitude Towards authority, savings, health, leisure experience… TECHNOLOGICAL 4.1 Technological infrastructure Evaluation of technology infrastructure is imperative before entering a new market to assess how technology affects the firm’s value chain → deciding efficient production process and effective approaching strategies 4.2 Internet penetration Leverage social media and e-commerce to increase direct retail to consumers and sales; leverage Internet’s trends to expand awareness among customers, increase customers’ loyalty 4.3 Investment in R&D Technological innovation can boost technological upgradation in business’s policies in management, cost-effective marketing, and upgrade production procedure potentials of 5G → Invest more in R&D to improve customers’ experience with increased delivery speed and available access ENVIRONMENTAL 5.1 Environmental regulations Have a great impact on business performance, national budget’s allocation and cost advantage in the Restaurant Industry: Need to adhere to all environmental regulations, norms, especially in countries with strict environmental law systems 5.2 Waste management Many countries have strict norms of waste management and sustainability → Associate to the waste management authorities and institutions to be able to follow regulations on hygiene and disposal and avoid any future environmental scandals 5.3 Customers’ awareness How customers evaluate green lifestyles and eco-friendly products directly impact business’s performance → altering product innovation priorities, develop sustainable products → cater traditional value proposition 5.4 Renewable technologies Some countries offer subsidies to stimulate investment in renewable technologies → Business can leverage opportunities to invest in renewable technologies to ensure long-term sustainability → enhance brand image → increase stakeholder satisfaction and expand the customer base LEGAL 6.1 Business Laws Before entering into a new market: Business needs to assess what the business laws are and how they are different from the home market 6.2 Transparency in Judiciary System & Processes + Time Taken for Court Proceedings Knowing these laws is essential for fair and consistent decision making + protect business’s rights 6.3 Consumer Protection Laws Be aware of what are the consumer laws in the country, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws → Align its policies and protection for customers’ private information 6.4 Employment Protection Laws Know clearly what employment laws and discrimination laws are in the country and are they consistent with the business model → Providing a secure, fair, equal work environment for the workforce → increase productivity and attracting talented labor